Buy-to-Let Newcastle
Buy-to-Let Newcastle Overview
Are you considering investing in buy-to-let property in Newcastle? Newcastle is a great environment for people to live and visit and offers endless business and investment opportunities. With £1.5bn of investment planned for Newcastle, the city is growing from strength to strength. Newcastle is the fastest-growing location for business investment – and boasts strengths in creative & digital, science and healthcare, and Offshore and Marine.
Investment property in Newcastle comprises a large proportion of terraced housing, although many of these are large Georgian structures, particularly in the city’s central areas. Large family houses are available in the outer regions; in recent years, many new-build developments have emerged around the city. Home to Newcastle University, there are a high number of students seeking student life in one of the largest economic hubs in the region, making student housing another strong consideration for investing in Newcastle.
A Thriving Economy
Rising Property Prices
According to HM Land Registry, between November 2021 to November 2022, house prices in Newcastle increased by 8.7% – reaching an average of £192,611 and they have surpassed housing delivery targets for the past four years, up by 62% in the past year, making Newcastle a place with options for investors and tenants as Newcastle has the ability to consistently deliver a strong supply of new housing.
Booming Rental Market
Newcastle offers a wide selection of amenities, attractions and business opportunities to suit every type of tenant. According to the ONS, the population size of Newcastle has increased by 7.1%, from around 280,200 in 2011 to 300,200 in 2021. This is higher than the overall increase for England which was 6.6%.
Transport
Areas close to universities tend to include some attractive features such as; good public transport links, amenities, local facilities, shops and green space, all of which make the area attractive for both student and professional tenants.
Buy-to-Let Newcastle Stats
- £192,611
The average price for a property in Newcastle upon Tyne as of November 2022 is £192,611 (HM Land Registry, 2023).
- 8.7%
House prices in Newcastle increased by 8.7% between November 2021 to November 2022 – reaching an average of £192,611 (HM Land Registry, 2023).
- 7.4%
Rental rates in Newcastle have risen 7.4% within the past year. (Bricks and Mortar, 2022).
- 1.3%
Rental yields for properties in close proximity to a university are an average of 1.3% higher than what can be achieved in the nearby area (Buy Association, 2022).
We don't have any current opportunities in Newcastle, but if you are interested in investing in UK buy-to-let property, get in touch with us today!
How much deposit do you need for a buy-to-let in Newcastle?
Buy-to-let deposits in Newcastle can vary depending on a number of features. If you are buying a property with a mortgage, each individual application would be subject to the circumstances of the investor and each investor would be subject to undergo a valuation to be considered for a mortgage on the property, however, if you are buying with cash there are usually set payment plans in place depending on the property. If this is the case, you will need to contact the selling agent to request these details as a finance option may not always be possible.
Where is the best place to buy property in Newcastle?
Rental yields for properties in close proximity to a university are an average of 1.3% higher than what can be achieved in the nearby area, according to recently released data. This could boost a buy-to-let landlord’s annual returns by almost £6,000. The report showed that landlords operating very close to universities achieved yields of an average of 5.2%, compared with a 3.9% average when letting out properties further away from higher education institutions. This makes investing in property close to a university a sensible choice for landlords.
How is the rental market in Newcastle?
According to Bricks and Mortar, in the last 12 months, rental rates have risen by 7.4% and are still set to continue rising. The rental sector has actually benefitted from the uncertainty in the British economy over the last few years. In early 2021 it was reported that more people decided to rent rather than tie themselves into a mortgage. In 2022, according to Rightmove, it was reported that Newcastle is one of the most in-demand cities in the UK for houses, with competition being more fierce than in London.
Current investment opportunities
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Assisted Living property in Mexborough, Doncaster with NET returns up to 10%
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Student accommodation in Nottingham with NET returns up to 8.95%
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These luxury waterside apartments can earn returns of 11% NET yields
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The apartments at Harworth House offer 10% NET yields for 25 years
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Coltran Mill
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The houses and apartments at Coltran Mill offer 9.1% NET yields for 25 years
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Croft Court
Prices from:£182,000Property typeAssisted LivingLocationDoncasterInvestment Highlight
Croft Court offers a 25-year rental lease with 10% yields and annual inflation-linked rent rises
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